Chapter 1

Question 0

An example of shortage is limited amounts of

Answer 0

Food available because the trucks carying it are on strike

Question 1

The government of a country mayst make a decision between increasing military spending and subsidizing wheat farms. His kind of decision is a

Answer 1

Guns or bitter issue

Question 2

A nations automakers install new robotic machinery to build cars. Now, cars take only a day to make, and he factories can produce many more cars than before. This is an example is growth cause by

Answer 2

Technology.

Question 3

What does a production possibilities frontier show?

Answer 3

The maximum amour that an economy can produce

Question 4

On example of an entrepreneur is

Answer 4

An artist who runs a business painting murals in office buildings and restaurants

Question 5

What is a factory building an example of?

Answer 5

Physical capital

Question 6

The purpose of a production possibilities graph is to

Answer 6

Show alternative ways to use an economy’s resources.

Question 7

What are all goods and services scarce?

Answer 7

All resources are scarce

Question 8

The lack of which of the following represents a scarcity?

Answer 8

Enough worker to finish two jobs because there is a limited supply of workers

Question 9

What can decision making grid do?

Answer 9

Help you determine some of the opportunity cost for your decision

Question 10

How would you describe an economy that uses its resources to make he greatest possible number of goods and services?

Answer 10

Efficient

Question 11

The opportunity cost of a decision can be examined by using a

Answer 11

Production possibilities graph

Question 12

An efficient economy is one that

Answer 12

Uses it’s resources to make the most goods and services

Question 13

The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit, Kiwis are become increasingly popular, and Desertville has decided to expand kiwi cultivation and decrease tire manufacturing. According I the law of increasing cost,

Answer 13

The cost of producing kiwis will increase

Question 14

Human capital includes

Answer 14

A taxi drivers knowledge of he city streets

Question 15

Any resource that are made by humans and used to create over goods and services are called

Answer 15

Capital

Question 16

What are the opportunity cost of a decision?

Answer 16

The most desirable alternative given up for the decision

Question 17

Which of he following is the kind of decision hat can be made at he margin?

Answer 17

Whether or not too hire new workers

Question 18

Which of the following makes someone an entrepreneur?

Answer 18

Running a service that hires people to install sprinkler systems in lawns

Question 19

A country’s production possibilities increase because the available workers become more skilled at using a computer. His is an example of growth cased by

Answer 19

Technology

Question 20

The government of a country must make a decision between spending money on a hospital or spending the same amount on border security. What kind of decision is this?

Answer 20

Guns or butter

Question 21

A company that makes baseball caps is underutilizing its resources. What does this mean?

Answer 21

The company is producing fewer caps than it could be.

Question 22

The law of increasing cost means that when an economy increases the production of one item

Answer 22

The production cost will increase also